Contracting and child mainteanance

[Destiny2]

Without going into much detail, IF I am required to pay CM and let's say it has been decided that I am meant to pay 40% of my earnings. If I am doing an Outside IR35 gig and I am also the Director of my own Ltd company, is the 40% CM taken off my salary or the money that my company gets.

I think it should just be 40% of my monthly wages. But, wanted to clarify.

[Gibbon]

Without going into much detail, IF I am required to pay CM and let's say it has been decided that I am meant to pay 40% of my earnings. If I am doing an Outside IR35 gig and I am also the Director of my own Ltd company, is the 40% CM taken off my salary or the money that my company gets.

I think it should just be 40% of my monthly wages. But, wanted to clarify.

All the answers are here, it won't 40% either max is 25% of net for 3+ children and less if you have them a few nights a week.
On £1000 gross with 1 child and 1 night a week = aprox £100. Oh and its your personal income although unreasonably withholding money to pay less will be frowned on.

Calculate your child maintenance - GOV.UK (www.gov.uk)

[ComplianceLady]

All the answers are here, it won't 40% either max is 25% of net for 3+ children and less if you have them a few nights a week.
On £1000 gross with 1 child and 1 night a week = aprox £100. Oh and its your personal income although unreasonably withholding money to pay less will be frowned on.

Calculate your child maintenance - GOV.UK (www.gov.uk)

Up to 40% if you have arrears

[northernladuk]

Without going into much detail, IF I am required to pay CM and let's say it has been decided that I am meant to pay 40% of my earnings. If I am doing an Outside IR35 gig and I am also the Director of my own Ltd company, is the 40% CM taken off my salary or the money that my company gets.

I think it should just be 40% of my monthly wages. But, wanted to clarify.

Everyone that is trying to get out of paying what they are due always does.

Forget the words earning and wages and us the word income. You might struggle with this concept but your other half and a court won't.

[vetran]

Up to 40% if you have arrears

I was going to say I thought it was 25% but yours makes sense.

My sister is in the middle of this and the CSA seem to be fairly incompetent.

[northernladuk]

I think it should just be 40% of my monthly wages. But, wanted to clarify.

I wasn't going to ask but am intrigued. Why do you think only your wages should be included and not your income? Bearing in mind you run an artificial salary/dividends system what factual basis is there for you to think that only your wages count?

[vetran]

I wasn't going to ask but am intrigued. Why do you think only your wages should be included and not your income? Bearing in mind you run an artificial salary/dividends system what factual basis is there for you to think that only your wages count?

As you say it should be out of his income. I imagine the CSA are a bit clueless on this and assume that turnover=income or that deferred earnings don't count. The government assumes 95% of turnover is income regardless of expenses under IR35.

[northernladuk]

As you say it should be out of his income. I imagine the CSA are a bit clueless on this and assume that turnover=income or that deferred earnings don't count. The government assumes 95% of turnover is income regardless of expenses under IR35.

I know that. I'm just bemused how the OP thinks there is a chance in hell only this artificially low wage is the only thing to be considered and his very high dividends aren't. There is trying to play the system but surely you need to be smart about it and thinking that only 11k of wage compared to 80k of income would be considered doesn't seem very smart.

[Gibbon]

As you say it should be out of his income. I imagine the CSA are a bit clueless on this and assume that turnover=income or that deferred earnings don't count. The government assumes 95% of turnover is income regardless of expenses under IR35.

Well that wasn't the case with me. It was 15 years ago so maybe things have changed. I became involved with them when when one of the kids left school and the court order ceased for her, which meant a 50% drop as I still had another at school. The ex went to the CSA and I told them that I pay myself salary and divvies. But they would only take salary into account despite me saying that it wasn't enough! I told the ex she needed to put an appeal in and say I had significant other income (it would have come anyway at some point and no need to play silly buggers). Long story short is they took director re-numeration into account, salary + divis and left the rest alone. They also told me that unlike a court order, if I didn't get paid I had no obligation to pay as its out of income not assets. That proved a useful nugget when the ex wasn't happy with the amount, but was never used even between contracts.

[Destiny2]

I wasn't going to ask but am intrigued. Why do you think only your wages should be included and not your income? Bearing in mind you run an artificial salary/dividends system what factual basis is there for you to think that only your wages count?

If I was doing an Outside IR35 gig, I would be an employee of my company and the contract with the clientco would be between them and my company. My company would pay me wages while the rest of the money would sit in the company's bank account.